Warner Bros. Discovery is shutting down CNN+ a month after its launch.
CNN's new parent company will cease operations of the subscription streaming service on April 30 after the platform got off to a slow start with dismal daily viewership, CNN announced.
"While today's decision is incredibly difficult, it is the right one for the long-term success of CNN," Chris Licht, the incoming CEO of CNN, wrote in a memo to staffers Thursday, obtained by New York Times. "It allows us to refocus resources on the core products that drive our singular focus: further enhancing CNN’s journalism and its reputation as a global news leader.”
CNN+ customers will receive a prorated refund on their subscription fee.
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Hundreds of staffers employed for the streaming service will continue to be paid and receive benefits for the next 90 days as they explore jobs at "CNN, CNN Digital and elsewhere in the Warner Bros. Discovery family," per CNN.
Andrew Morse, head of CNN+ and digital, will be departing the company after a transition period.
The cable news network reportedly funneled a $300 million upfront investment into the service, which drew fewer than 10,000 daily users in the first two weeks. The streaming service lured top talent from competitors, including former Fox News anchor Chris Wallace, prior to its launch.
CNN+, the streaming service that was hyped as one of the most signifiant developments in the history of CNN, will shut down on April 30, just one month after it launched. https://t.co/Y1XHnFaK3P
— CNN Breaking News (@cnnbrk) April 21, 2022
In an all-staff meeting Thursday, Licht told employees it was a "uniquely shitty situation."
Licht claimed that "this was an incredibly successful launch," but he noted the streaming service was incompatible with the newly merged company's plans, as reported by CNN. "It is not your fault that you had the rug pulled out from underneath you," he said.
J.B. Perrette, CEO of Discovery Streaming & International, placed some blame on "prior leadership," saying that "some of this was avoidable" but that "prior leadership decided to just keep going" with the March 29 launch, CNN reported.
Despite an impending merger, former CNN leadership, led by Jeff Zucker and Jason Kilar, continued forward with a March launch.
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CNN’s former parent company, WarnerMedia, merged with Discovery to form Warner Bros. Discovery earlier this month.